Bernhard Capital to Pay $1.2B for Natgas Assets

Bernhard Capital Partners, a services and infrastructure-focused private equity management firm, has acquired CenterPoint Energy’s natural gas distribution operations in Louisiana and Mississippi through its portfolio company, Delta Utilities, for $1.2 billion.

The assets include approximately 12,000 miles of main pipeline serving approximately 380,000 metered customers.

“It [the deal] builds upon our recent announcement to acquire Entergy’s New Orleans and Baton Rouge natural gas distribution businesses, establishing stronger, more resilient communities across the Gulf South. Once both transactions are complete, Delta Utilities will be a leading natural gas utility in Louisiana and Mississippi and among the top 40 providers in the U.S.,” explained Jeff Jenkins, founder and partner at Bernhard Capital Partners.

For CenterPoint, the divestiture allows for a strategic reallocation of resources. The sale frees up approximately $1 billion of future capital expenditures, which the company plans to redirect towards other jurisdictions.

The transaction is anticipated to close toward the end of the first quarter of 2025.

Based in Baton Rouge, LA, Bernhard Capital invests in companies that provide services to government, infrastructure, industrial, utility and energy sectors, as well as utility assets. The firm has deployed capital in four funds across several strategies and has approximately $3.4 billion of gross assets under management.